Method of accounting is primarily for internal decision

Assignment Help Financial Management
Reference no: EM13914417

Which method of accounting is more commonly used by external stakeholders? Then, which method of accounting is primarily for internal decision making? Financial Accounting or Managerial Accounting?

Reference no: EM13914417

Questions Cloud

Estimates the projects terminal value : A project is expected to generate the following sequence of cash flows over the first five years of its life: Year 0 1 2 3 4 5 CF ($m) -65.00 8.00 8.00 9.00 9.50 10.00 Assume the appropriate discount rate for the project is 10%. Estimates the project..
Optimal level of leverage from tax-saving perspective : Define EBIT and discuss why the optimal level of leverage from tax-saving perspective is the level at which interest equals EBIT. Does this have connection under-leveraging corporations, both domestically and internationally?
Define optimal fraction of debt and growth rate of firm : Define the optimal fraction of debt and the growth rate of a firm. What is the relationship between the two?
Considering proposed project which requires an investment : As a financial manager for a company, you are considering a proposed project which requires an investment of $750,000 in fixed assets. The project has a five-year useful life but is classified as three-year MACRS property for tax purposes. The projec..
Method of accounting is primarily for internal decision : Which method of accounting is more commonly used by external stakeholders? Then, which method of accounting is primarily for internal decision making? Financial Accounting or Managerial Accounting?
What is the net present value of this investment : ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disney Company has an opportunity interest rate equal to its..
Is this an ethical dilemma or a basic legal dilemma : Suppose you are the accountant for a small cabinet building shop, and it is the end of January. Your manager, who is also the owner of the business, is in the process of trying to get a loan from the bank. Is this an ethical dilemma or a basic legal ..
Determine the markup as a percentage of the selling price : A manufacturing company has fixed costs of $120,000 per month and variable costs of $6 per unit. Determine the break even quantity for each of these price points. Determine the markup as a percentage of the selling price when the cost is $7 and the s..
About the macaulay duration : You find a bond with 8 years until maturity that has a coupon rate of 7 percent and a yield to maturity of 7 percent. What is the Macaulay duration?

Reviews

Write a Review

Financial Management Questions & Answers

  System will be depreciated straight-line to zero

Your firm is contemplating the purchase of a new $575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $59,000 at the end of that time. At what level of pretax cost ..

  What is the firms free cash flow of that year

A firm has $ 3 million market value and it sells preferred stock with a par value of $100. If the coupon rate on the preferred stock is 9% and the preferred stock trades at $85, what is the cost of preferred stock financing? A firm reports that in a ..

  What is the net present value of project at discount rate

Peir Inc. is considering a project that contributes $10,000 at the end of the first year and $5000 at the end of the second year? The initial cost of the project is $8,000. What is the net present value of the project at a 10% discount rate?

  Calculate the total finance charge

Calculate the total finance charge and annual allocation of finance charge

  Considering leasing new robotic milling control system

Your firm is considering leasing a new robotic milling control system. The lease lasts for 5 years. The lease calls for 6 payments of $300,000 per year with the first payment occurring at lease inception. What is the maximum lease payment that you wo..

  What is the present value of the tax shield

Carter's Home Supply has a $35 million bond issue outstanding with a coupon rate of 8.5 percent. The tax rate is 38 percent. What is the present value of the tax shield?

  Invests the amount saved in income taxes

Twins Invest. Kathryn Ake, of Omaha, Nebraska, plans to invest $3000 in mutual fund for the next 25 years to accumulate savings for retirement. Her twin sister, Kristin, plans to invest the same amount for the same length of time in the same mutual f..

  How much will you pay for the companys stock today

Caan Corporation will pay a $2.62 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company’s stock..

  Valuation of declining growth stock

Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 7% pe..

  What stock price will you receive a margin call

You open a brokerage account on January 1 and sell short 500 shares of Apple Computer at $163.39 per share. The initial margin requirement is 50%. The maintenance margin is 30%. Disregarding interest and dividends, at what stock price will you receiv..

  What is the firms pv of the interest tax shields

If a firm has $7.4 million in debt, $22.4 million in equity, a tax rate of 34%, and pays interest on debt, what is the firm's PV of the interest tax shields?

  Find the net payment on an equity swap

Find the net payment on an equity swap in which party A pays the return on a stock index and party B pays a fixed rate of 6 percent. The notional amount is $10 million. The stock index starts off at 1,000 and is at 1,055.15 at the end of the period. ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd